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    Question

    To assess the capital invested in the company's

    operations, K Ltd. needs to determine the capital employed. Given the provided financial data, what is the correct amount of capital employed?
    A Rs.12,00,000 Correct Answer Incorrect Answer
    B Rs.6,00,000 Correct Answer Incorrect Answer
    C Rs.8,00,000 Correct Answer Incorrect Answer
    D Rs.16,00,000 Correct Answer Incorrect Answer
    E Rs.10,00,000 Correct Answer Incorrect Answer

    Solution

    All assets minus current liabilities: All assets = Land Rs.200,000 + Building Rs.200,000 + Fixed Assets + 200,000 + Debtors Rs.200,000 + Other Current Assets Rs.200,000. = 10,00,000 Current liability = 200000 Capital employed = 800,000

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